Virgin Money has launched The Retrofit Boost, a new mortgage product designed to help home owners improve their property’s energy efficiency.

The new mortgage, arranged in collaboration with Hive Energy, offers customers a cashback amount to make their home more energy efficient. 

Hive has a range of packages to improve energy efficiency and help check for possible grants.

According to data from the Office of National Statistics the average house Energy Performance Certificate rating in the UK is band D, which Virgin says highlights the need for home energy efficiency improvement, where band A is the gold standard.

Residential product options available at launch have a £995 product fee and include a five-Year fixed rate at 75% LTV at 4.99% with £3,000 cashback and a five-year fixed rate at 85% LTV at 5.04% with £3,000 cashback.

There’s also a seven-Year fixed rate at 85% LTV at 5.74% with £10,000 cashback, and a 10 -year fixed rate at 85% at 5.84% with £15,000 cashback.

The Retrofit Boost mortgage is available exclusively via any intermediary registered with Virgin Money and is available for both residential and Buy-to-let purchase and remortgage customers.

Richard Merrett, chair of The Green Mortgage Advice Initiative, says: “The crucial difference in their launch is in giving a ‘what next’ option for consumers, the inclusion of Hive, a trusted brand offering expert advice on energy-efficient solutions, simplifies the journey for clients by providing the ability to research and coordinate the retrofit process. 

“As a broker, it expands the range of products we can offer our clients, allowing us to have a timely conversation about improving energy efficiency at a crucial point in the homeownership journey. Our expertise lies in advising on the financial aspects of the mortgage, while Virgin Money provides the funding, and a trusted partner delivers the retrofit solutions – it’s a fantastic collaborative approach that truly benefits our clients.”

Craig Calder, head of secured lending at Virgin Money, adds: “We recognise the increasing desire among customers to create more efficient living spaces. However, traditional financing options for home efficiency upgrades can be restrictive. The Retrofit Boost Mortgage is designed to dismantle these barriers.” 

The minimum loan size is £150,000, and the product will be available for loans up to £500,000.